Mackie Designs Reports Third Quarter Results

October 24, 2002 – Woodinville, WA – Mackie Designs Inc. (NASDAQ:MKIE) today announced its financial results for the third quarter and first nine months of 2002.

Mackie reported revenue for the third quarter of $46,404,000. This compares to revenue of $48,431,000 for the third quarter of 2001. Gross margin rose to 28.9% from 23.8% for the year-earlier period. The net loss was $934,000, or $0.07 per share. This compares to a net loss of $3,835,000, or $0.31 per share, for the third quarter of 2001.

For the nine months ended September 30, 2002, revenue was $144,321,000 compared to $159,684,000 for the same period last year. The net loss was $2,532,000, or $0.20 per share. This compares to a net loss of $4,669,000, or $0.38 per share, for the same period of 2001.

"We are doing what needs to be done to restore Mackie's profitability," said Chief Executive Officer Jamie Engen. "We are focused on reducing costs and increasing productivity throughout the organization. To that end we continue to work on the rationalization of Mackie's global manufacturing in order to increase gross margin. We already manufacture certain of our popular analog mixers in China. By the end of 2002, we will be building amplifiers, power mixers, and some speakers in China as well. Additionally, we are taking a hard look at our existing products to ensure that each one meets our objectives for sales volume and profitability. We have already discontinued certain underperforming product lines, and are re-engineering certain products to reduce our costs.

"While these projects will all take considerable time and resources, we have made substantial progress so far in 2002, and we expect to accomplish much more in the next two or three quarters. Gross margin on new products will benefit from improved manufacturing efficiencies. Operating costs will be reduced where appropriate. We also will focus on our balance sheet, with the goals of reducing both inventories and bank debt.

"The combination of the current weak economic environment and the costs of transition of certain of our manufacturing operations has adversely affected our financial performance in 2002. But with the many positive changes we have made and will make throughout the company, we are convinced that Mackie will emerge from this period a stronger, more competitive organization. We are excited about Mackie's long-term growth opportunity."

Accounting Change – SFAS 142
Effective January 1, 2002, Mackie adopted Statement of Financial Accounting Standard No. 142 (Goodwill and Other Intangible Assets), which requires goodwill not to be amortized but to remain on the balance sheet and be tested annually for impairment. The financial statements reflect this lower amortization of intangibles. Amortization of goodwill for the third quarter of 2001 was $406,000. In addition, Mackie has determined that a probable impairment of goodwill exists within one of its reporting units. The carrying value of goodwill attributed to this reporting unit is $6.2 million. The amount of the impairment has not been determined. The company currently expects that a retroactive impairment charge will be reported with its fourth quarter results.

Conference Call
A simultaneous WebCast of the conference call may be accessed online at http://www.companyboardroom.com/company.asp?client=cb&ticker=mkie or at http://www.MackieDesigns.com/ir/index.html. A replay will be available after 1:00 PM EDT at these same URLs. For a telephone replay, dial (800) 633-8284, reservation #20957983 after 1:00 PM EDT.

Forward-Looking Statements
This press release contains statements that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations, estimates and projections about the Company's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above and the following: changes in demand for the Company's products, product mix, the timing of customer orders and deliveries, the impact of competitive products and pricing, constraints on supplies of critical components, excess or shortage of production capacity, difficulties encountered in the integration of acquired businesses and other risks discussed from time to time in the Company's Securities and Exchange Commission filings and reports. In addition, such statements could be affected by general industry and market conditions and growth rates, and general domestic and international economic conditions. Such forward-looking statements speak only as of the date on which they are made, and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.

About Mackie
Mackie Designs Inc. is known worldwide as a leading manufacturer and marketer of high-quality, affordable professional audio systems. Mackie products can be found in professional and project recording studios, video and broadcast suites, post production facilities, sound reinforcement applications including churches and nightclubs, retail locations and on major musical tours. Mackie Designs Inc. products are marketed by 54 distributors to more than 100 countries around the world.

"Mackie." is a registered trademark of Mackie Designs Inc. in the United States and other countries.

For more information please contact: Mackie Designs Inc. – 16220 Wood-Red Road N.E. – Woodinville, WA 98072 – Phone: 425-487-4333 – Fax: 425-487-4337 – Internet: www.mackiedesigns.com